"My heart beckons me forward, but my head tells me that my continued presence on the Conservative line would simply lead to the election of Andrew Cuomo and the continuation of an entrenched political machine," Lazio said at a news conference in Manhattan. "I do not want to be responsible for that, and that is unacceptable."

Lazio was resoundingly defeated by the insurgent, tea party-backed Buffalo developer Carl Paladino in a Sept. 14 Republican primary, but Lazio won his slot atop the Conservative ticket.

During the news conference, Lazio had strong words for Paladino, as well as Cuomo, the Democratic nominee. His remarks, without directly referencing Paladino, attacked some of his controversial statements.

"I look at the two major party candidates, and I see flawed individuals. But this is the choice we now have. This is how our democracy works," Lazio said. "I remain unconvinced that Carl Paladino will bring the improvement that New Yorkers need, deserve and want."

The Bronx County GOP will nominate Lazio for a Supreme Court judgeship in a district in which Democratic candidates typically win. A Conservative Party committee to fill vacancies will meet this week to select a new gubernatorial nominee. Lazio said he would not weigh in.

Paladino's path to the Conservative line still contains obstacles: the party's state chairman, Michael Long, has likened Paladino to Pierre Rinfret, the unsuccessful 1990 Republican nominee, and called him "more of a caricature than a candidate."

On Monday, Long said he had come around.

"Some people have said things about me, and I've said things about other people," Long said. "And you know what? I'm closing the book, that's the end of that chapter, and we're moving forward."

Other elements of the party never backed Lazio. Erie County Conservative Chairman Ralph Lorigo and Suffolk County Chairman Ed Walsh backed an anti-Lazio slate at the party's convention in May, and are now expected to push for Paladino.

"We'll pursue whatever gives us the best chance to knock off Andrew Cuomo," said Walsh. "And more important, this party has to live on longer than all of us to do the people's business. My main goal is that this party's around."

If a party's gubernatorial candidate does not receive 50,000 votes in the general election, it loses automatic ballot status.

Nominating Paladino would help that cause. Had he remained in the running, Lazio was expected to siphon support from Paladino. But if he and Greg Edwards, the Republican lieutenant governor nominee, appear on the line, they could "fuse" their votes from the Republican, Conservative and Taxpayers parties.

Since 1974, no Republican in New York has won statewide office without also running on the Conservative Party line.

Bronx County GOP Chairman Jay Savino said Lazio "ran a spirited campaign, (but) on primary day people voted overwhelmingly for Carl Paladino. And it's incumbent upon Rick to listen to the will of the people."

Cuomo will appear on the Democratic, Working Families and Independence party lines.

Lazio had been pressured by Republicans since the primary to step aside and had twice hedged on his intentions, saying last week in Colonie that he wished to remain "a strong voice" in the election, regardless of whether he runs.

Paladino applauded Lazio's decision while ignoring his criticism. A Cuomo spokesman, Josh Vlasto, said Lazio's exit "means that the choice in this election is now more clear and more stark than ever. The spotlight is now on the choice between the tea party extremism of Carl Paladino or Andrew Cuomo's record of fighting corruption, standing up for a woman's right to choose, and his detailed plans to create jobs for New Yorkers."